Technology is opening the door to new opportunities to better serve customers, disrupt antiquated industries and innovate old practices. Companies like Root Insurance are using technology to redefine the insurance industry, and its tech-driven approach is generating enormous demand. Building on the tremendous success that the company has seen in its first two years, Root is significantly expanding its operations in Columbus, moving from a 14,000-square-foot facility to a 65,000-square-foot downtown office. As part of the expansion, Root also plans to quintuple its current workforce of 88 employees, creating 463 full-time, permanent positions by the end of 2021.
Root was co-founded by Alex Timm, a veteran of the insurance industry. He saw a fundamental flaw in the insurance industry – he felt they weren’t fair. For Timm, the opportunity was clear – reinvent the traditional insurance model. Instead of calculating rates based solely on demographics, Root’s first-of-its-kind mobile app is an insurance product that gives good drivers a price based primarily on how they actually drive based primarily on how they actually drive – saving customers up to 52 percent on their previous rates.
Ohio has a foundation of strong financial headquarters backed by a statewide business culture of continuous improvement and technology innovation. Together, these make for an excellent environment for insurtech and other tech companies like Root to thrive. Another example of this in the insurtech space is Columbus-based Beam Dental, which recently raised $22 million and is rapidly expanding its presence in the city as well.
“Root’s growth since we were founded in 2015 is due in no small part to the strong talent we continue to find in Columbus,” said Timm, co-founder and CEO of Root. “While this expansion will allow us to continue to grow Root’s offering nationally, it will also deepen our roots in Columbus with the resources and space to grow the business with the momentum it deserves.”
JobsOhio, Columbus 2020 and the City of Columbus partnered to play an integral role in keeping Root in Ohio. The collaboration of Ohio’s economic development partners helps provide companies with a comprehensive plan to support their growth.
“It is no surprise that Root Insurance is so successful in the Columbus region,” said JobsOhio Managing Director for Financial Services Valentina Isakina. “The region’s cluster of insurtech talent makes it an ideal location for innovators to succeed, and we are delighted Root’s growth will bring more than 400 new jobs to downtown Columbus.”
Ohio has become a national hub for Insurtech companies—those transforming the insurance industry with innovative technology enhancements that unlock greater savings and efficiencies. JobsOhio is working hard to help this industry grow even bigger in the state.